Annual Report

2010-2011
Helping deliver quality healthcare

GS1 - The global language of business

Driving adoption of global standards through one vision, one voice, one organisation.

At GS1, our vision is a world where things and related information move efficiently and securely for the benefit of businesses and improvement of peoples lives, everyday, everywhere. Our mission is to be the neutral leader enabling communities develop and implement global standards and providing the tools, trust and confidence needed to achieve our vision.

ANNUAL REPORT 2010 - 2011

Contents
Message from the President .......................... 2 Message from the CEO .................................... 3 Healthcare ............................................................. 8 Retail .................................................................... 11 Food ..................................................................... 14 Transport & Logistics ..................................... 15 Focus Areas ....................................................... 17 Visibility ....................................................... 18 Data Quality ............................................... 20 B2C Initiative .............................................. 21 Sustainability ............................................. 22 Looking Ahead ................................................. 23

Message from the President

I take pleasure in presenting the 13th Annual Report of GS1 India for 2010-11. Despite volatile market conditions during the year, GS1 India performed well and exceeded targets set for 2010-11. W ith increasing incidence of counterfeit medicines globally and the need for lowering high healthcare delivery costs, adoption of technology and global standards which can help in product authentication, track & trace and lower healthcare supply chain costs become essential. Globally, GS1 is deeply engaged with healthcare stakeholders comprising policy makers, Industry etc in finding solutions to the above problems. GS1 India has been sensitizing the Indian healthcare sector on the above over the past few years which would now lead to adoption of GS1 barcodes from this year onwards, on pharmaceuticals destined for exports and sold in the domestic market. This is a signif icant development and is expected to lead to widespread barcode scanning in the country by pharmacies, hospitals etc with resultant benefits on ready stock availability, counterfeit detection, track & trace, recall and effective supply chain management of medical supplies. GS1 India was actively involved in the development of National standards on Good Agricultural Practices (India GAP). Discussions were also held with Global G.A.P. Germany on use of GS1 standards for unique farm/plot identification and this is expected to result in use of the GLN (Global Location Number) for identification of Globa G.A.P certified farms in the country. Under the aegis of the CII National Retail Committee, GS1 India conceptualized and undertook a comprehensive study on the quality of product data in the Indian Retail sector and its impact on the topline and bottomline of retailers and their suppliers. GS1 India organized and hosted successfully, the GS1 Asia Pacific Forum in Oct10 at New Delhi which drew 55 participants from GS1 organisations in 17 countries including Mr. Miguel Lopera, President & CEO, GS1 and key GO staff members. Shri Ravi Mathur, CEO, GS1 India was awarded the Retail Icon award for 2011 by the Asia Retail Congress in recognition of his contribution to the retail sector in India. I take this opportunity to thank the Board of Management for its continued pro-active support in furthering the objectives of GS1 India and on its behalf commend the work done by GS1 India Team under the leadership of Shri Ravi Mathur. Sumanta Chaudhuri

ANNUAL REPORT 2010 - 2011

Message from the CEO

GS1 India reported good overall performance in 2010-11 and exceeded its targets by 200% in subscriber enrollment and 30% in income generation. Delivery of quality and affordable healthcare is a key global priority, exercising the attention of Governments, Regulators and healthcare stakeholders. GS1 has been working in this space in response to Industry needs for standards which help in enhancing efficiency and quality of healthcare. The pharma sector is poised to adopt GS1 standards for domestic supplies with the Ministry of Health & Family Welfare, Govt. of India directing incorporation of GS1 barcodes for medical supplies procured by it for Central Government Hospitals and CGHS health centers. In a parallel movement aimed at facilitating product authentication and track & trace of pharma drugs, all pharma exports were also mandated to adopt GS1 standards and barcoding. Our Annual Report for 2010-11 takes healthcare as its central theme with the impending adoption of GS1 barcodes this year on medical supplies in India. A Proof of Concept was successfully organized and concluded by us to demonstrate on how global data synchronization would work between retailers and their suppliers. Consequent to it, there was broad acceptance on moving ahead with product data synchronization using GDSN standards developed by GS1. GS1 India conceptualized and guided the data crunch study conducted through IBM India, under the aegis of the CII National Retail Committee on prevalent product data quality in India. GS1 India was invited to participate in the National Technical Working Group under Quality Council of India to draw IndiaGAP standards. This is expected to drive implementation of traceability in Indian food supply chains using GS1 traceability standards, enhancing food safety and providing increased market access to Indian food exports. GS1 India maintained high level of visibility through participation as speaker/panelist in several important national events on retailing, logistics, food safety, counterfeiting etc. Concerted efforts were made at engaging the Automatic Identification Data Capture solution provider community in driving adoption of data capture technologies and global standards in Supply Chains. GS1 India continued to participate and actively contribute to the deliberations of the GS1 Advisory Council. At the GS1 Global Forum in Feb11, GS1 India participated as speaker/panelist/chairperson in several key business sessions. During the year Shri Sumanta Chaudhuri, Joint Secretary, Department of Commerce, Ministry of Commerce and Industry, Govt. of India took over as President of GS1 India. We gratefully acknowledge the services rendered by our previous President, Shri P. K. Dash and look forward to continued support and guidance from GS1 Indias Board of Management under Shri Chaudhuris leadership. A strong base has been created by us for adoption of GS1 standards across product categories and Industry sectors. We expect to leverage this with innovative approaches to spearhead growth in the coming years and continue to perform well as in the previous years. Ravi Mathur

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GS1 - The global language of business

GS1 is a neutral, not-for-profit organisation that facilitates collaboration amongst trading partners and technology providers, in order to solve together business challenges that leverage standards and ensure safety, eff iciency and visibility of value chains. Headquartered at Brussels, Belgium, GS1 oversees

a global network of 110 GS1 organisations serving over 150 countries. GS1 India (earlier EAN India), set up in 1996 as a not-for-profit standards body, is an affiliate of GS1. Its Management Board and founder members comprise the following:

y y

y y y y y y y y

Ministry of Commerce and Industry, Government of India Agricultural & Processed Food products Export Development Authority Federation of Indian Chambers of Commerce and Industry Associated Chambers of Commerce and Industry of India Federation of Indian Export Organisations Confederation of Indian Industry Indian Institute of Packaging Indian Merchants Chamber Bureau of Indian Standards Spices Board

GS1 India Management Board is headed by Shri Sumanta Chaudhuri, Joint Secretary, Ministry of Commerce and Industry, Govt. of India with Shri Ravi Mathur as its Chief Executive Officer. In 2010-11, GS1 India completed 15 years affiliation with GS1, in recognition of which it was presented a plaque by Mr. Timothy Smucker, Chairman Emeritus and Mr. Miguel Lopera, President & CEO, GS1.

ANNUAL REPORT 2010 - 2011

GS1 standards and solutions

For the past 35 years, GS1 is dedicated to the development and implementation of open, interoperable and user driven standards used in Supply Chain Management. Open standards in general enable interoperability, flexibility and vendor independence which in turn result in reduction in end product costs to businesses and consumers. GS1 standards are widely used across over 25 industry sectors which include Retail, Healthcare, Transport & Logistics, Food etc. More than one million companies worldwide use these standards and solutions to improve their topline and bottomline performance, meet growing consumer demands and enable compliance with varied requirements of buyers and legislations worldwide. GS1 standards provide a global language of business that helps organisations identify, capture and share information throughout the global value chain in a uniform, structured, seamless and consistent manner. This in turn facilitates implementation of several Supply Chain applications like traceability, recalls, product authentication, inventory management, upstream integration etc.

Identify

Share

GS1 Identifiers provide unique, unambiguous and GS1 eCom : Standards for electronic business universal identification of products, assets, service messaging for rapid and accurate data relationships, locations/entities etc. transmission between trading partners. GS1 GDSN : Standards which enable synchronisation Global Data Synchronisation Network.

Capture

GS1 Barcodes : Standards for encoding GS1 of master data between trading partners using the Identifiers in barcodes GS1 EPC/RFID : Standards for encoding Electronic GS1 EPCIS : Standards for sharing EPC related Product Code (EPC) in Radio Frequency information between trading partners, safely and Identification (RFID) tags. Also includes standards securely on the What, Where, When, and Why of for reader management and middleware. In addition to the above and in consideration of the growing importance of mobile phones for facilitating access to additional information on products as desired by businesses and consumers worldwide, GS1 has launched GS1 events occurring at any point in supply chains. MobileCom which links trusted sources of product information with these communities. GS1 India promotes awareness on GS1 standards and solutions and supports their implementation in line with the overall global objectives of GS1.

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GS1 - The global language of business

Performance
GS1 India added over 1500 new subscribers in this fiscal year with their distribution across sectors illustrated schematically as below:2% 8% 51% 3% 3%

19% 14% Food & Beverages Textile, Clothing & Footwear Pharma, Cosmetics & Toiletries Consumer Durables Printing Perfumery Miscellaneous

Mr. Ravi Mathur, CEO of GS1 India was awarded the Retail Icon award for 2011 at the Asia Retail Congress held on 8-9 Feb11 at Mumbai, India. The award was presented in acknowledgment of GS1 Indias contributions to the Indian retail industry.

ANNUAL REPORT 2010 - 2011

GS1 India participated in several national and international events besides hosting the GS1 Asia Pacific Forum 2010 in New Delhi. The GS1 Asia Pacific Forum drew participation from GS1 organisations in 17 countries in the AP region with over 50 delegates. The three-day event held from 19th Oct till 21st Oct10 at New Delhi combined several business meetings with training programs and social events and were well appreciated.

At the Global G.A.P conference held in London in Oct10, a focused session on India was organized in which GS1 India participated as a panelist and highlighted role of GS1 standards in traceability and on its engagement in the preparation of IndiaGAP standards.

At the ECR Asia Pacific Conference held Kuala Lumpur in Oct10, GS1 India was invited to present on the study it had undertaken in collaboration GS1 India was invited to deliver presentations on healthcare and data synchronization sessions at the GS1 Global Forum held in Brussels in Feb11. It also chaired two business sessions on Healthcare and data synchronization. with IBM India on data crunch under the CII National Retail Committee and share results of the same with the Industry. Besides the above, GS1 India participated in several national events as well as a speaker/panelist which included the following: y CII International conference on counterfeiting and piracy. y India Retail Forum 2010 y FSSAI International Conference on best practices in food safety implementation y CII National Logistics Summit y ASSOCHAM Food & Agri exporters Conclave y Food Forum India 2011

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GS1 - The global language of business

Healthcare
Security, visibility and efficiency in healthcare are currently at the forefront of Government regulations and industry concerns around the world. In light of concerns about patient safety and rapidly escalating healthcare costs, Governments worldwide are taking action and important policy changes are on the way. Various authorities worldwide have developed, or are developing, regulations requiring automatic identif ication, serialization and traceability systems in healthcare to improve patient safety, including the European Commission, the US Food and Drug Administration (FDA), the National Health Surveillance Agency in Brazil (ANVISA), the Ministry of Health of Turkey and the Ministry of Health and Family Welfare (MoHFW), Government of India. GS1 has been working with the global healthcare community for several years via its global user group: GS1 Healthcare. This group is leading the Healthcare sector to the successful development and deployment of GS1 global standards by bringing together experts in Healthcare to enhance patient safety and Supply Chain efficiencies. Sector-wide implementation of Automatic Identification and Data Capture (AIDC) systems will improve patient safety, including reducing medication errors, fighting counterfeiting and enabling effective product recalls and adverse event reporting. It will also help remove inefficiencies throughout the healthcare supply chain. In addition to the Global Traceability Standard for Healthcare, the following global standards for the healthcare sector are now also available: y Product identification Standard for Medical Products: This new product identif ication standards provide industry stakeholders with a common set of data and data carriers for medical products at every packaging level. y Product Identification Standard for Small Instruments: This global standard for direct part marking of small surgical instruments specially covers AIDC marking of surgical instruments to enable traceability throughout the instrument reprocessing cycle, and in particular, as instruments move to and from the sterilisation department in hospitals or sterilisation centres. y Global data synchronisation in Healthcare: Excellent work continues to be achieved by the Global Data Synchronisation Network

Enhancing patient safety and optimizing hospital management processes are important aspects in delivering quality and affordable healthcare. Global standards which facilitate universal identification of patients, medical and hospital supplies, assets etc using automated data capture technologies like barcoding, RFID etc are core to realizing the above objectives. Dr. Praneet Kumar CEO-Dr. B L Kapur Memorial Hospital

ANNUAL REPORT 2010 - 2011

(GDSN) implementation initiative, which was launched to accelerate the adoption of global data synchronisation in healthcare. More leading healthcare organisations have joined the initiative, including representatives from healthcare providers, group purchasing organisations, pharmacies and distributors on the demand side and participants from a dozen companies from the supply side as well. These efforts have already resulted in more than 70 live GDSN connections globally

between partners in the healthcare supply chain. Additionally, based on the experiences of the participants, a sub-work team has developed a report to assist other healthcare organisations in deploying GDSN. To support the immediate implementation of the GDSN in healthcare and allow the proper registration of any healthcare product in the same, GS1 has released two new Global Product Classification (GPC) codes, one for drugs and another one for medical devices.

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GS1 - The global language of business

Patient safety initiatives across the world tackle the challenges in the Healthcare Supply Chain, including the reduction of medication errors, the fight against counterfeiting, optimization of postmarket surveillance etc. The National Health Service (NHS), U.K. adopted GS1 coding standards provided to help eradicate patient safety issues. Netherlands has implemented an electronic blood transfusion administration record, utilizing Barcode Point of Care technology (BPOC) in the blood transfusion process. This has potential for dramatically improve patient safety and preventing the wrong blood products from being administered to a patient.

In Australia, a single source of item master, titled the National Product Catalogue (NPC), has been created for use by health institutions etc. It has been used successfully by the State Health jurisdictions to improve the quality of data sourced for their pharmaceutical tendering process. GS1 India has been closely engaged with the healthcare sector in India to promote awareness on global standards and best practices and to provide technical guidance and support in adoption and implementation of the same. After the breakthrough achieved last year with getting GS1 standards adopted for unique identification of each CGHS beneficiary and acceptance for using GS1 Datamatrix barcodes (2D barcodes) for all the medical supplies procured by the Ministry of Health & Family Welfare, Government of India, another signif icant breakthrough was achieved this year with getting GS1 BarCodes notified for pharmaceutical exports. GS1 Datamatrix is a data carrier specified for use within the GS1 System. The symbology holds large amounts of data in a relatively small space as compared to traditional linear barcodes, and is therefore becoming increasingly popular for a wide range of applications including aerospace, pharmaceutical and medical device manufacturing. GS1 India worked closely with Department of Commerce (DOC), Government of India in providing knowledge on global best practices and standards to meet DOCs requirements for track & trace, product authentication and counterfeit detection. Efforts are underway at getting State Health Authorities also to adopt GS1 standards in barcoding of all medicines, medical devices, hospital supplies etc. GS1 India has been involved with various groups active in healthcare sector in India which include FICCI CASCADE Committee on anti-smuggling and anti-counterfeiting etc.

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ANNUAL REPORT 2010 - 2011

Retail

Sustainability, a shared supply chain, consumer technology and health & wellness continue to drive the Retail & consumer goods sector worldwide. There is also a clear trend among retailers worldwide to focus on supply chains that support multichannel and multi-format retailing. Demand driven retailing models are emerging which can quickly respond to consumers exact needs and redefine the consumer experience by fulfilling cross-channel demand, understanding & responding to demand signals, building value networks, delivering a consumer-centric supply chain and supporting products & services innovation. Consumers are also increasingly demanding more information on products before making buying decisions. The fast growing population of mobile telephones worldwide provides an excellent communication opportunity to brand owners, retailers with their customers. This is expected to result in better understanding of consumer shopping behavior, more effective and efficient new product introductions and product promotions with almost instantaneous consumer feedback.

Indian Retail has started taking cognizance of the above global trends which is likely to transform consumer shopping experience and impact positively topline and bottomline performance of retailers and brand owners. There is also an increased focus by both national and international retailers on catering to preferences of local consumers across different regions of the country, given its wide cultural diversity, buying/eating preferences etc. At a global level, GS1 maintained active collaboration with the major associations that gather Fast Moving Consumer Goods (FMCG) and Consumer Packaged Goods (CPG) companies together, including The Consumer Goods Forum (TCGF), the Grocery Manufacturers Association (GMA), Food Marketing Institute (FMI) and Efficient Consumer Response (ECR). GS1 developed GS1 DataBar symbology which allows more information to be stored in less space. It permits marking on small, hard-to-mark consumer product goods like fresh foods and jewellery to carry additional information such as weight, expiry date and lot number.

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GS1 - The global language of business

Retailing requires the ability to respond with speed to fast changing consumer preferences and demand for products. Retailers need to build consumer-centric supply chains which support year round product availability and seamless information exchange between retailers and their suppliers. GS1 standards play a key role in facilitating the same. Rakesh Biyani Director & CEO-Retail, Future Group & Member GS1 Board of Management

GS1 DataBar also enables solving todays business problems such as product authentication & traceability, product quality & effectiveness, variable measure product identification, and couponing. GS1 DataBar representing a new capability at retail pointof-sale (POS) witnessed wide scale implementation in North American groceries, piloting in Europe and Asia, and can be found on loose produce shipping all over the world. GS1 DataBar is destined to increase efficiency and productivity in retailing worldwide.

benefits of EAS with the visibility benefits of RFID. The solution is a disposable or reusable tag that is programmed with a unique item number (the EPC number) which can be read from the production line to the retailers front door. This, in turn, helps prevent shoplifting in clothing, consumer electronics product categories etc. A number of implementations have been undertaken by the retail industry on item level tagging of apparel, with clear advantages being demonstrated in efficiency and inventory management.

Retailers currently employ solutions such as Electronic Article Surveillance (EAS) to detect and deter customer theft. These systems have a number of limitations because they y are limited to deterring and detecting y provide no actionable intelligence y cant help with inventory, returns or counterfeit detection y can create false alarms which can have a : negative impact on the customer experience In 2010, GS1 issued implementation guidelines for the use of RFID and GS1 standards as part of Electronic Article Surveillance (EAS). GS1 EPCglobal standards combine the theft deterrent

Additionally, following the publication of Implementation Guidelines on the use of RFID and GS1 standards in the supply chains of the retail consumer electronics sector, work is currently underway to integrate consumer electronics group under the umbrella of the Retail Value Chain Industr y User Group (RVC IUG). In India, GS1 India is actively involved with the Retail & Consumer Goods verticals of Apex Chambers of Commerce including CII, FICCI and ASSOCHAM, providing key inputs on global best practices in standards and technology adoption in Supply Chains.

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ANNUAL REPORT 2010 - 2011

After

the

success

in

adoption

and

On implementation, this is expected to become an important referral case with an estimated 5 billion liquor bottles which will get barcoded and scanned over a 7 year period while effecting sales. Other product categories and sectors are likely to adopt barcoding for similar applications in the future. Major efforts were undertaken at improving barcode scanning quality across product categories. GS1 provides verification reports for GS1 barcode packaging artworks/label samples to enable full diagnostics on scanning quality and guidance on its improvement through modifications in artworks etc. During the year, over 2100 products incorporating GS1 barcodes of 515 companies were taken up for generation of verification reports, resulting in significant improvement in barcode scanning at Retail POSs across the country.

implementation of GS1 barcodes in food/FMCG categories, GS1 India achieved signif icant breakthrough in the apparel retailing sector through adoption of GS1 standards in this category in lieu of proprietary coding practices followed earlier. This would help spread adoption of GS1 BarCodes to other product categories as well including general merchandise, home appliances, consumer electronics etc. Delhi State Excise Department is in the process of implementing barcoding on liquor bottles using GS1 standards which would enable visibility of stocks in the supply chain, monitoring inventory levels, effecting timely replenishment and authenticating alcoholic beverage products at the retail outlets.

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GS1 - The global language of business

The importance of farm to fork Traceability in the food supply chain is well known as it has helped retailers and regulators worldwide recall food products in the event of food safety related crisis. APEDA has implemented web-based Traceability in a number of product categories for exports using GS1 global standards. The success of these initiatives is visible from the growth in export of such products and has encouraged APEDA to continue with this work in other food sectors. S Dave Director-APEDA & Chairman-CODEX

Food
Globalisation, increasing consumer awareness, stringent quality standards and the perishable nature of food items are making the food supply chain more complex with every passing day. Modern food supply and distribution channels are far more complex than a chain they are more like a tapestry with dozens and even hundreds of threads coming together to produce the final product. Global food Supply Chains, with geographically dispersed suppliers and customers, are under increased scrutiny from customers, increasingly concerned about food safety and quality. An added challenge for food sector is in effecting product recalls efficiently, accurately and with great speed through reverse logistics in the event of detection of sub standard product quality unfit for human consumption. GS1 has been working closely with global food Supply Chain partners to help them overcome challenges concerning availability of fresh, safe and quality food at any given time by aligning both downstream and upstream processes. Technology offers a wide variety of ways of achieving traceability and many solutions already exist for food safety and food recall. Neutral global standards can help ensure the smooth interoperability of all these traceability technologies and systems GS1 facilitates food industr y by providing Global Traceability Standards (GTS) and supports their implementation to enhance eff iciency for tracking and tracing of fresh produces during distribution and retail. Introduction of GS1 DataBar for automatic identification of difficult to label products, made it possible to identify individual pieces of fruit and vegetables. GS1 MobileCom for extended packaging information, e.g. nutritional facts, allergen alerts, product testing certificate, recipe, etc empowers consumers to make informed choices about the food that fits their diet (fair-trade, organic, etc). GS1 standards and solutions based product authentication systems also help brand owners combat counterfeiting and ensure consumers safety GS1 India and IHDA (Indian Horticulture Development Alliance a USAID-MSU joint initiative) are collaborating in capacity building of growers/ exporters through implementation of global traceability system and GS1 standards to gain market entry into developed markets worldwide. GS1 India participated in the preparation of IndiaGAP wherein GS1 standards have been referenced for unique identification of farms, product identification and traceability. This was the first instance of GS1 standards referenced within any National GAP standards worldwide and would help GS1 in taking up with GlobalG.A.P. for similar endorsement. This in turn would help GS1 standards adoption in the Agri sector worldwide. GS1 India also signed a MOU with Global G.A.P. to enable use of GLNs (global location number) issued by it for unique and universal identification of GlobalG.A.P. certified farms in India.

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Seamless and accurate information exchange between trading partners related to goods movement is critical to success in logistics operations. Therefore global standards which facilitate universal identification of shipments, locations and electronic information exchange are extremely critical. Anshuman Singh MD and CEO, Future Supply Chain Solutions Ltd.

ANNUAL REPORT 2010 - 2011

Transport & Logistics

In todays truly globalised Supply Chain, the importance of efficient logistics management and transportation optimisation is becoming all the more clear, because excellent communication and coordination is absolutely necessary as components and goods cross more and more borders than ever before. The use of s tate-of-the-ar t infor mation technologies has also revolutionised the way logistics and transportation activities are organised and conducted, Transportation and logistics services have a vital role to play in making sustainability programmes possible and in helping companies meet their energy consumption goals. Considerations about sustainability in the Supply Chain are playing an increasingly important role in the selection of suppliers and the awarding of contracts. W ith GS1 Standards as the basis for their operations and services, transportation and logistics teams can standardize information and automate its collection leaving them more time to focus on how to use information rather than how to get information and this leads to much greater efficiency in transport and warehousing. With these voluntary, user-designed standards, companies in the transportation and logistics sector can work more eff iciently, more economically, more sustainably and more competitively. It gives much better visibility of goods throughout the supply chain, including being able to track every stage and trace shipments back to their origin. Adopting GS1 standards has sustainability benef its, since improved eff iciency in transportation means reduced CO2 use and full traceability of goods ensures better social res ponsibility. The improved eff iciency ultimately leads to greater profitability, since the right goods get to the right place at the right time.

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GS1 - The global language of business

GS1 has spent much of the past year working on a fully integrated approach to offer GS1 standards adapted for T&L companies. Two workgroups have been created to work in the following areas: Logistics Interoperability Model - This will increase business process interoperability and visibility of operations. Standard International Logistics Label (STILL) This will standardize on a common logistics label which would facilitate eff icient handling of logistics units in warehousing and transport processes.

GS1 also works closely with ISO to ensure compatibility with GS1 standards. GS1 and the Bureau International des Containers et du Transport Intermodal (B.I.C.) also signed a Memorandum of Understanding. B.I.C. is a notfor-prof it organisation that oversees and administers a global system for allocating and managing identification codes (BIC-CODES) used in international container transport. B.I.C. and GS1 will cooperate on the harmonisation of supply chain standards for freight, transport and logistics. Many companies have already seen that the benef its of adopting GS1 standards include improved efficiency, increased visibility of the flow of goods and shipments, more efficient handling and inventory management, increased security of distribution, faster operations and smoother exchanges with Customs and other Government agencies.

Cross-border trade facilitation

For several years now, GS1 has been working closely with the World Customs Organization (WCO) and national Customs administrations on pilot projects designed to improve the predictability, security, compliance and traceability of cross-border shipments.

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ANNUAL REPORT 2010 - 2011

Focus Areas

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GS1 - The global language of business

Visibilty
Enabling full visibility of the supply chain has been identified as one of four strategic pillars that will be the focus of GS1s work in the coming years. Visibility is a broad concept that relates to knowing where things are at any point in time and why they are there (or where they have been in the past). Visibility means leveraging a range of standards and business applications in order to see more event-based information relating to key business processes. It is increasingly a key capability for businesses to be able to address the perennial issue of if you cant see something then you cant measure it, and if you cant measure it, its probably costing your business too much. Many supply chain processes can be transformed through deeper, more accurate and rich visibility information. These processes could include improving overall supply chain accuracy, velocity and effectiveness, the management of inventory, product tracking and tracing, confirming the chain of custody and ownership of a product, product authentication and managing products returned by customers. A recent study showed clearly that best-in-class supply chain performers, measured as those companies with the lowest out-of-stocks, lowest landed costs and highest on time shipment rates also have the most visibility into their supply chains.

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ANNUAL REPORT 2010 - 2011

Standards for visibility cover three key areas: y Identification standards that provide the foundation for data and interface standards. y Data standards that define the content and meaning of visibility data so that one supply chain party can understand data that it receives from another supply chain party. y Interface standards that define how supply chain parties can interact with each other to exchange visibility data. In these times of intense competition, every opportunity must be seized to improve effectiveness, reduce cost, and increase the speed and accuracy of operations; and this, in order to ultimately serve the customer, consumer or patient needs.

The GS1 System provides a solid foundation and an integrated suite of global standards that can enable businesses to achieve global supply chain visibility. Although a range of standards exists today to enable the achievement of visibility, there is still work to do. The final element of visibility will be the completion of work on Discovery Services. Discovery Services will enable parties to exchange data in a secure way, which will ensure each party retains the rights of ownership of its visibility data and will ensure that requests for information are authorised and authenticated. Discovery will add a new level and depth of information that can be used to achieve the benefits of even greater visibility.

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GS1 - The global language of business

Updated, accurate and reliable master data on SKUs is at the core of several critical business processes in Retailing connected with timely product replenishment and ordering, optimized shelfspace planning, accelerated speed to market etc. GS1 global standards on data quality and data alignment/synchronization help Industry in streamlining their business processes and serve our consumers better. Thomas Varghese CEO, Aditya Birla Retail Ltd. & Chairman, CII National Retail Committee

Data Quality
Product data quality and its automated alignment/synchronization between suppliers and retailers has been a major issue which has impacted efficiencies and productivity of retail operations worldwide. Poor quality data results in additional costs for all Supply Chain partners and hinders implementation of data synchronisation between them which is critical and core to performing several business operations connected with space planning, new product introductions and promotions, logistics efficiency etc. An efficient Supply Chain relies on good quality data so having the tools to maintain high quality data is essential. To study product data quality and bring out its impact on business processes in the Retail sector, a data crunch study was undertaken through IBM India by the CII National Retail Committee, under the guidance of GS1 India. The GS1 India Data Crunch report reveals that the Indian Retail and CPG industry can save INR 40 to 50 billion in just 5 years by addressing the issue of poor data quality. GS1 has developed data quality and data synchronisation standards which are rapidly under adoption worldwide across 132 countries. GS1 India will offer this service in India as well in collaboration with 1SYNC Inc., a subsidiary of GS1 U.S. Good quality data implies complete, consistent, accurate master, time-stamped and industry based data. By improving the quality of data, trading partners reduce costs, improve productivity and accelerate speed to market. It is foundational to collaborative commerce and global data synchronisation. W ith GS1 standards, companies can easily improve data quality. This in turn helps them manage the huge increase in demand for retail product information and improve the consumer experience. Benefits include: For Suppliers y Introduce new products to market faster y Understand the customer better for sales purposes y Have product origin and environmental data to hand y Support sales with extensive nutritional and ingredient data y Quickly reconcile invoices and payments y Prevent returns and delays For Retailers y Deliver a better service with enhanced product training and information y Influence sales with more marketing information and cross-selling opportunities y Reduce returns y Prevent running out of stock of a product y Have accurate shelf labelling y Achieve 100% scans at the checkout y Produce accurate receipts

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Using the Mobile channel PEPSI plans to deploy service messages, such as providing useful information - alerts, notifications, events and product updates. Anand Sarkar Director-Packaging Development & Innovation, PepsiCo India

ANNUAL REPORT 2010 - 2011

B2C Initiative
Consumers desire more information and their increasing ability to access it via technology leaves them facing a dilemma: To trust or not to trust the digital data they receive about products they are considering for purchase? The potential impact is significant as global research conducted by GS1 found that nearly 40% of shoppers said they would not buy a product if they could not trust the accuracy of the digital information. Increase in consumer service demands will define new service models, offered via the Internet, that move beyond selling individual products and will bring different types of solutions to consumers and shoppers. GS1 believes a window of opportunity exists to improve consumer confidence in digital product information while also further addressing the growing focus among consumers and regulators on health and wellness. To address the topic of Business-To-Consumer (B2C) digital product information, GS1 proposes to provide guidance in the development of solutions that improve access to nutritional data for industry and consumers alike through a Trusted Source of Data. The objective is to support the communication of authentic product information provided by brand owners to retailers, application providers and Government. GS1 Standards based B2C applications connect consumers to trusted product information through the use of mobile devices.

GS1 MobileCom
The growth of mobile features and device, convergence such as wallet phones will drive mobile commerce. By 2013 more than 2 billion mobile users globally will have made a purchase via their handsets. The previous year will be looked back as the year that using mobile phones to scan barcodes became mainstream. The popularity of a range of apps for iPhones, Android phones and other mobile devices is proof that existing linear bar codes, the very GS1 BarCodes that have been on cans and boxes in grocery stores for three decades, are well suited and immediately functional for enabling mobile services. Extended packaging, which refers to using the camera of a mobile device to read a products bar code and get product information, is a reality in the market. Now that mobile barcode scanning is proven, there is a clear need to provide consumers with access to trusted product information. This is a very exciting area where GS1 standards can play a huge role. GS1 organisations worldwide have been facilitating various active pilots for B2C initiatives. GS1 MobileCom, a cross-industry initiative involving manufacturers, retailers, mobile industry companies and solution providers will ensure interoperability of mobile eco systems. Over 201011, GS1 MobileCom continued to work to ensure that all consumers have access to trusted product information and related services via their mobile phones; and that all stakeholders use open standards so that mobile applications can become interoperable, scalable and cost-effective. GS1 published a white paper which explores the opportunities for brands and retailers as consumers begin to use mobile phones to plan their shopping and during visits to stores, and details ways in which GS1 standards can support this strong emerging market.

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GS1 - The global language of business

Sustainability
Health, safety and well-being are increasingly gaining importance for consumers and will have significant ramifications in the future as shoppers place greater attention on more healthy products as well as eco-friendly lifestyles. Consumer awareness and carbon footprint regulations are expected to increase significantly, as consumers look to regulatory bodies and companies to play a major role in combating climate change. Worldwide, manufacturers have been started considering sustainability strategies as a profit oriented steps and sustainability primarily as a driver of innovation, rather than a cost burden. A new business model is required to focus on collaborating to compete as brandindependent and smart supply chains emerge where information (including POS, forecast and inventory data) as well as assets (technologies, facilities and resources) are shared across the value chain. By working together, not only as an industry but also with regulatory bodies and consumers, GS1 can strengthen the three pillars of sustainability: natural environment, economic performance and society. These elements should not be seen as trade-offs; they complement each other. Various companies and industry associations are launching scorecards and metrics-def inition projects. Businesses need common indicators to be able to measure and manage sustainability.

GS1s role in sustainability

As an open neutral organisation, GS1 is perfectly placed to help ensure collaboration, alignment and knowledge sharing between trade associations, users and other members of the sustainability community. Indeed, many GS1 member companies are already involved in local waste management, recycling, transport and logistics efficiency, or carbon footprint reduction projects. Their experiences and best practices will enrich and enhance similar efforts elsewhere in the world. GS1s existing standards will play a key role here and it can oversee the development of new standards if required. GS1 standards provide a common language to allow for intelligent and informed exchange between businesses on sustainability. GS1 standards applied to sustainability can help organisations share information about products, packaging, manufacturing processes and organizations. This could include information such as carbon footprint, packaging material (utilisation and composition), water usage and energy usage. The above information could be used to improve products, ensure proper cleaning and recycling, optimise transport and reduce waste. This in turn would enable industries to meet their sustainability needs in the whole supply chain, from raw material to the point of sale, consumption, wastes and recycling. One of the GS1s priorities in 2010-11 is to actively support the Global Packaging Project (GPP) led by The Consumer Goods Forum. The GPP is an effort to identify and assemble a set of commonly-used indicators and metrics for packaging Global Data Synchronisation Network (GDSN) will be leveraged to facilitate the exchange of GPP metrics between trading partners, thus reducing the cost of managing sustainabilityrelated information for companies.

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ANNUAL REPORT 2010 - 2011

Looking Ahead

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GS1 - The global language of business

Looking Ahead
GS1 India has performed consistently well in the past 13 years and will strive to do so in 2011-12 and future years as well. GS1 India would continue to work closely with retailers across product categories to facilitate GS1 barcodes adoption by their suppliers. It would also work to improve product data quality in the Retail sector and provide product data synchronization service in the country to enable automated, real time data alignment and synchronization between retailers and their suppliers. The pharma sector would move towards adoption of barcoding using GS1 standards due to the requirements and directives of the regulator, policy makers. This would help automate pharma drugs stock management across the pharma supply chain, product authentication, track & trace, recalls management etc, benefitting both Industry and consumers. GS1 India would be working closely with Industry in facilitating adoption of GS1 barcodes. GS1 India would strive to work closely with MSME to encourage SMEs in adoption of barcoding and global standards to comply with global best practices and requirements of modern retailers. Food safety through traceability is of growing concern and interest worldwide. As a large food producer, India requires to integrate and comply with global best practices in this area to gain larger market share. GS1 India would work closely with Regulatory bodies, Industry in adoption of global traceability standards (GTS) which enable food producers to comply with diverse regulatory and industry requirements on traceability and recall. Subscribers would be supported as in previous years through implementation workshops, information updates on global developments in Supply Chain standards, conferences and seminars etc. Internal systems are being strengthened to provide quality MIS reports which enable quality decision making from tactical and strategic perspectives. Alliances with solution providers would be strengthened to assist in standards promotion across the country and Industry sectors and help Industry in adoption/implementation of GS1 standards. GS1 is working at developing standards which would provide trusted sources of product information to consumers using mobile phones. With the second highest population of mobile phones in the world, India is uniquely positioned to benefit from this development and GS1 India would be looking at developing applications and services around these standards to offer to Industry and consumers. GS1 India would actively participate as a member of the GS1 Advisory Council and various other international workgroups and contribute to their deliberations. Retaining and hiring quality staff and continually upgrading their skill sets would remain of highest priority since success of GS1 India depends entirely on the same. The Board of Management of GS1 India has provided excellent guidance and support in furthering objectives and strategic plans. Their wide reach within Industry and with Policy makers/ Regulators shall continue to be leveraged.

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GS1 - The global language of business

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